8678 IS THE IMMEDIATE HURDLE; 8015 CONTINUES TO BE IMMEDIATE SUPPORT

8678 IS THE IMMEDIATE HURDLE; 8015 CONTINUES TO BE IMMEDIATE SUPPORT

WORLD MARKETS

US indices soared 7%-7.7% yesterday on hope that the peak in coronavirus cases could be reached soon as  the country's biggest coronavirus hot spot, New York, registered first decline in daily coronavirus deaths on Sunday. Decline in death rates in in Spain and Italy, two of the worst affected countries in Europe, also added to optimism.

WTI crude fell 8% to $26.08 per barrel while Brent dipped 3.1% to settle at $33.05 per barrel after the OPEC+ alliance of oil producers announced it was delaying a meeting at which it could agree to a production cut. 

European markets climbed 3.1%-5.8%. The British pound fell on news that Prime Minister Boris Johnson has been admitted to intensive care after his coronavirus symptoms "worsened,". Germany reportedly drew up a list of measures which officials think should allow life to return to normal after its lockdown ends after the country reported a slowdown in the rate of new cases on Sunday for the third day in a row.

On Friday, US indices fell 1.5%-1.7%, pressured by a spike in coronavirus-related deaths in New York and after digesting a dismal U.S. jobs report.

New York Gov. said deaths in the state rose by 562 in 24 hours to more than 2,900 for the biggest increase to date while total number of cases topped 1,00,000.

U.S. payrolls fell by 701,000 in March, marking the worst jobs report since 2009, while the unemployment rate jumped to 4.4%.

Oil surged on the hope that a production cut deal will soon be reached after OPEC and its allies announced they will hold a virtual meeting on Monday, and after Russian President Putin reportedly said that the county wanted to see global action on cuts of around 10 million barrels per day. WTI crude jumped 11.9%, or $3.02, to $28.34 per barrel while Brent rose 13.9% to $34.11 per barrel. For the week WTI rose 31.7% in its best week on record back to the contract’s inception in 1983.

For the week, US indices fell 1.7%-2.7%.

AT HOME

Senesx and Nifty slipped 2.4% and 2.1% respectively, extending the losing streak to second consecutive day. Sensex settled at 27590, down 674 points while Nifty lost 170 points to finish at 8083. BSE mid-cap and small-cap indices fell 1.2% and 1% respectively, outperforming main indices yet again. BSE Bankex and Finance indices nosedived 5.4% and 4.4% respectively, becoming top losers among the sectoral indices while Healthcare and Oil & Gas indices were the top gainers, up 3.6% and 2% respectively.

FIIs net sold stocks and stock futures worth Rs 1961 cr and 310 cr respectively but net bought index futures worth Rs 279 cr. DIIs were net buyers to the tune of Rs 227 cr.

Rupee depreciated 67 paise to end at 76.22/$.

For the week, Sensex and Nifty tumbled 7.5% and 6.7% respectively, extending the losing streak to seventh straight week and marking the lowest weekly close since the week ended 20th January 2017 and 23rd December 2016 respectively.

Financial stocks tumbled after global brokerage Moody's Investors Service changed the outlook for the banking system to negative from stable, as it expects a deterioration in banks' asset quality due to disruption in economic activity from the coronavirus outbreak.

The IHS Markit India Services PMI was at 49.3 in March, down from February's 85-month high of 57.5.

OUTLOOK

Today morning, Asian markets are trading with gains of 1%-2.2% and SGX Nifty is trading around 8485, suggesting about 400 points higher start when compared to Friday's close of Nifty futures, 8084.

In Friday's report we had said that 8185 continued to be immediate support, upon breach of which, 8015, the 67% retracement level of the recent 7511-9039 upmove, would be the next downside target/support

Nifty broke 8185 support and slipped further to 8055 before closing at 8083 and but is set to open above 8400 today.

8678, the top made last Tuesday, would be the immediate hurdle to eye, upon crossover of which, 9039, the top made on 27th March, would the bigger resistance.

8015, the 67% retracement level of the recent 7511-9039 upmove, continues to be immediate support.